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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (2386)	12/19/2001 3:03:39 PM
From: Eva	Read Replies (1) \| Respond to of 4409

from the Kitco forum! I am sure Rhody does not mind ! Date: Wed Dec 19 2001 14:11 rhody (LEASE RATES) ID#411230: Copyright © 2001 rhody/Kitco Inc. All rights reserved Silver lease rates went up an additional 1% on top of the 2 to 3% yesterday. It looks like those who leased unloaded the lot on the market this morning, all over the space of and hour or two. Notwistanding my previous post, I expected the hammering we see today to happen on monday last. The delay may be a function of the difficulty of acquiring physical metal sources. Lets put this in perspective. In order to dump silver 3% this morning, they had to drive lease rates 30% higher than monday's rates. This cost the shorts dearly. If rates remain up, this is going to get prohibitive. To put the present spike in perspective, the one month rate in Jan. 1998 reached 70%. Mind you Buffet was buying one third of the available commodity exchange stocks at the time. If the present spike is an echo of the Buffet spike, we will see even higher rates early next year... There is no way this is carry trade economic, not at these rates. So why would anyone borrow silver at 12%/year. Could it be just to look at it, or could it be that 12% is far cheaper than buying back all your lease obligations on the spot market. Let me see, one billion oz leased bought from stock of 300 Moz visible leaves ______________ for ordinary commercial demand. That's funny, I get a negative number when I do that calculation. Is that possible????? The answer to that question is DEFAULT!!!!!! ( unless of course all these guys actually have been leasing silver just to hang it on the wall, jingle it in their pocket, or look at it. The Xmas present use? Sorry, I don't give money for Xmas presents. It's insensitive. ) snicker, Rhody